This set of slides explains the reasons Shelby County is considering implementing a Public Safety LOIT tax.

1. FOR
SHELBY COUNTY

2.  LOIT Public Safety Tax is an income tax that a
county may adopt up to .0025 to use for the
county’s public safety and only for public safety.
This tax will be paid by everyone in the county that
works, not just property owners.

3. • Police / law enforcement
• Firefighting & fire prevention systems
• Emergency ambulances & medical services
• Emergency Action (environmental cleanup)
• Probation Programs
• Community Corrections Programs
• Juvenile detention centers & facilities
• County Jail

4.  Communication systems – E-911 systems
 Medical & Health care expenses for inmates
 Pension payments for:
◦ Police officers & other department employees
◦ Firefighters & other department employees
◦ Sheriff & other department employees
◦ Other personnel providing public safety services

5.  Revenue decrease from the States Actions:
◦ From 2007 - 2014 the decrease in State Revenue has
dropped $1.3 million:
 2007 - $1,657,969.95
 2008 - $1,627,012.20
 2009 - $ 746,732.30
 2010 - $ 699,103.07
 2011 - $ 587,855.23

6.  2012 - $ 491,418.88
 2013 - $ 362,274.85
 2014 - $ 327,645.20
 The losses stem from :
◦ Interest rates dropping (Banks) $653,923.08
◦ Inheritance tax (state dropped it) $ 73,193.97
◦ DOC (money for prisoners) state took Federal Prisoners
out of the Counties $400,000.00
◦ Homestead Credit & Property Tax Replacement Tax
(state dropped it) $400,000.00

7.  Since 2007 the state has cut Personal Property
Taxes:
 Inventory Tax:
 Personal Property Tax – boats, campers, ATV
 2016 dropping any Personal Property that the
acquisition amount is under $20,000.00

8.  The State has cut the county’s levy for the budget to be
raised from 5% to 2.6% (this is the amount the county
can raise their budget from year to year)
 2.6% only equals $147,000.00 increase for the 2016
budget. This isn’t very much when you consider:
Electric, fuel, insurance, supplies prices are still rising.
 For the 2016 Budget the County has used an extra 36%
from Racino on top of the 15% to balance the budget

9.  The County has had two employees either retire
or leave and they have not replaced them – this is
a savings of around $75,000.00 with benefits.
 Each department has done their best with their
spending and has turned back in some of the
current year budget.
 These departments are not big or nor do they
have excess spending.

10.  SHERIFF DEPUTIES:
◦ 30 CURRENT INCLUDING SHERIFF
◦ NEED 4 MORE TOTAL COST =$339,523.08
CURRENT JAIL OFFICERS:
30 CURRENT
NEED 13 MORE RECOMMENDED BY JAIL
ANALYSIS REPORT
TOTAL COST = $867,429.29

11.  INCOME TAX
 A Person with the annual salary of $45,000.00 will
pay
 An extra $112.50 per year
 or
$8.66 per month
or
 $4.33 per pay if paid biweekly

12.  THE PUBLIC SAFETY LOIT TAX WILL BE THE
SAME AS THE CURRENT EDIT TAX .0025
 2015 EDIT TAX INCOME = $947,427.12
 2016 ESTIMATED INCOME = $947,249.00

13.  CITY OF SHELBYVILLE - $1,234,403.00
 ST. PAUL - $ 2,775.00
EDINBURGH - $ 22,732.00
MORRISTOWN - $ 41,749.00
FAIRLAND - $ 4,225.00
This must also be used for Public Safety Only

14.  If the Council Adopts the LOIT Public Safety Tax
before November 1, 2015, the County will start
receiving money in January 2016

15.  Where the Racino Money that the county has
been receiving has helped the county a lot, the
county has been able to keep the property tax rate
low. The county has not had to go out and borrow
money for Capital Projects, Maintenance on
Current Buildings, Computer Equipment, etc.

16.  There are two things the Council has in the back
of their minds are:
◦ 1. The state could lower the percentage that the county
is currently receiving.
◦ 2. The Racino could file bankruptcy and close all
together and the county would have no back up.
Currently the County is putting 10% of the yearly income
into savings, so that if the county does loose the monthly
income, they will be able to continue running until they
can come up with a plan

17.  State Representatives:
 Jean Leising
 Michael Crider
 Sean Eberhart